Loading Poll...Testimony Before The Senate Legislative Oversight Committee
Dr. Michael P. Riccards is Executive Director of the Hall Institute of Public Policy – New Jersey. Riccards is a former college president and a presidential scholar who has authored 15 books.
For the last several years, I have advocated an independent comptroller, and was pleased when Governor Corzine named at least an appointed comptroller. But this bill’s focus is broader and more correct—it is time to establish an elected comptroller with greater responsibilities.
In 1947, the state constitutional convention created a unified executive in which only the governor was elected by the people of New Jersey. On paper at least, the New Jersey governorship went from being a comparatively weak office to the strongest governorship in the nation. But in two generations, the job of governing has become much more complex, and the oversight responsibilities in areas of finance have multiplied beyond imagination. In this state and at this time, the basic issues we face are financial, and stronger accountability is needed.
First, the elected comptroller under this proposed amendment will assume the responsibilities of the Office of the State Auditor as outlined in the Constitution ( Article VII, Section 1, Paragraph 6) and state statutes (N.J.S.A. 52: 21-1 et seq). That office embraces the responsibility “to conduct post-audits of all transactions and accounts kept by or for all department, offices and agencies of the state Government and to report to the Legislature or any committee thereof and to the Governor….
The State Auditor can personally, by his assistants or by contract with independent public accounting firms, examine and post-audit all accounts, reports and statements and make independent verification of all assets, liabilities, revenues and expenditures of the state, its departments, institutions, boards, commissions, officers, and any and all other state agencies now in existence or subsequently created.
The scope of an elected comptroller should include not just investigating public contracts, but the office should have the authority to investigate the uses and expenditures of public funds at any level, without dollar levels being set, even for so-called independent authorities and boards. There are new standards of accounting and corporate responsibility in public companies, mandated by Sarbanes-Oxley (2002). Can we expect any less of public appropriations, expenditures, and resources?
Obviously, we are proposing a constitutionally separate officer in order to strength its independence from the other branches of government, to avoid any hindrances to its investigations, to seal it off from political leaders, parties, and interest groups, and to increase the transparency of all public transactions so as to promote honest government. Also by relating to other state comptrollers, the New Jersey comptroller will promote the types of business and accounting oversight that represents “best practices” in the profession.
Second, I agree with the New York State model that the elected comptroller should have authority over the state pension funds. That oversight will not guarantee that high investment returns are the outcome; that has not been the case in the last two years in New York. But those huge resources of this state and its dedicated employees demand structured, informed, and persistent oversight.
Third, there may be some concern about the partisan aspects of electing a new official. I would propose that the candidates for the comptroller position, nominated by petition, be listed on a ballot without any reference to any party label. And surely this election should be totally publicly funded with a cap on expenditures for campaigns.
Madam Chairlady, the Senate should be commended in seeking to make an important structural change in our government. It is time to recognize the difficult and sophisticated tasks before us in terms of fiscal public policy and transparency.
Thank you.